PM makes first offer to drought-stricken farmers

Tony Abbott has made a first offer to drought-hit farmers. The Prime Minister wants to fast-track a new system of assistance to help more primary producers get income support across New South Wales and Queensland. However, farmers' groups say that although idea has merit, it won't be enough.

Transcript

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MARK COLVIN: Tony Abbott has made a first offer to drought-hit farmers.

The Prime Minister wants to fast-track a new system of assistance to help more primary producers get income support across New South Wales and Queensland.

Farmers' groups say the idea has merit, but won't be enough.

From Canberra, James Glenday reports.

JAMES GLENDAY: Throughout National Party heartland in country New South Wales and Queensland, farmers are desperate for rain and crying out for help.

WARREN TRUSS: Many of us represent electorates which are quite severely affected by drought.

JAMES GLENDAY: So for Nationals leader and Deputy Prime Minister Warren Truss, the issue is one that needs to be urgently addressed. This afternoon he met with his party room for the first time this year, in the Queensland city of Bundaberg.

WARREN TRUSS: Even though it might be raining rather lightly here at the present time, drought will be well and truly on our agenda here today.

JAMES GLENDAY: Before the meeting his deputy, and Federal Agricultural Minister, Barnaby Joyce was playing down the chances of a major assistance package for farmers.

BARNABY JOYCE: The issue that has to be discussed should be discussed in Cabinet, and I look forward to leaving my discussions for that part.

JAMES GLENDAY: But it's something he and his colleagues are continuing to fight for.

The Prime Minister Tony Abbott is also in Queensland and today made farmers a first offer: he's considering bringing forward a new system of drought relief assistance from the 1st of July.

TONY ABBOTT: The Commonwealth and the states agreed early last year that they would move from an old system to a new system. What I'd like to do is bring forward the start of that scheme.

JAMES GLENDAY: The new system, which was announced by Labor in its final budget, will establish a farm household allowance to help farmers and their partners experiencing financial hardship.

It will mean more farmers are eligible for assistance and the fortnightly payment will be at the rate of the Newstart allowance - of about $500 a week for up to three years.

TONY ABBOTT: I certainly want the farmers of Australia to understand that this is a government which feels what they're experiencing at the moment.

JAMES GLENDAY: But the Opposition agricultural spokesman, Joel Fitzgibbon, says there are already similar assistance arrangements in place.

JOEL FITZGIBBON: What people are getting now under the transitional arrangements are very similar to what they would get if Tony Abbott brought July 1 forward. My appeal to the Prime Minister is: please don't mislead farmers.

JAMES GLENDAY: There's not much chance of that. New South Wales Farmers Association president Fiona Simpson says the Federal Government will have to allocate more money.

FIONA SIMPSON: This is a very, very big problem and it needs a very, very big solution.

JAMES GLENDAY: And Queensland state Agricultural Minister, John McVeigh, agrees.

JOHN MCVEIGH: That is simply one small initial step. We need a hell of a lot more than that. We need now to consider drought, from a funding perspective, as a natural disaster; the rules don't currently consider it as such.

JAMES GLENDAY: They seem to have found a supporter in Deputy Prime Minister, Warren Truss.

WARREN TRUSS: It may well be that the response will have to be more than that, because the impact in some communities is quite severe and the impact is... goes beyond just the bread and butter needs of a family.

JAMES GLENDAY: But the Federal Budget is tight and expectations are high. A decision's expected in the coming weeks.